Core Viewpoint - Tyson Foods reported quarterly earnings of $1.15 per share, exceeding the Zacks Consensus Estimate of $0.85 per share, and showing an increase from $0.92 per share a year ago, representing an earnings surprise of +35.29% [1][2] Financial Performance - The company posted revenues of $13.86 billion for the quarter ended September 2025, slightly missing the Zacks Consensus Estimate by 0.35%, compared to $13.57 billion in the same quarter last year [2] - Over the last four quarters, Tyson has surpassed consensus EPS estimates four times and topped revenue estimates two times [2] Stock Performance - Tyson shares have declined approximately 8.3% since the beginning of the year, while the S&P 500 has gained 14.4% [3] - The current Zacks Rank for Tyson is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $1.03 on revenues of $14.16 billion, and for the current fiscal year, it is $3.85 on revenues of $56.86 billion [7] - The outlook for the Food - Meat Products industry is currently in the bottom 11% of Zacks industries, which may impact Tyson's stock performance [8]

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The meat supplier faces falling beef and pork volumes, but chicken sales are bucking the trend. ...

Financial Performance - The company achieved its sixth consecutive quarter of year-over-year (YoY) growth in Sales, Adjusted Operating Income (AOI), and adjusted Earnings Per Share (EPS)[5] - Q4 2025 sales reached $13860 million, a 48% increase compared to the previous year, excluding the impact of legal contingency accruals[28, 29] - Adjusted Operating Income (AOI) for Q4 2025 was $608 million, a 19% increase YoY[28] - Adjusted EPS for Q4 2025 was $115, a 25% increase YoY[28] - The company's free cash flow for fiscal year 2025 was $1177 million[31] Segment Performance - Chicken segment achieved record profitability[5] - Chicken segment sales for Q4 2025 were $4411 million, a 38% increase YoY, with AOI at $457 million, a $101 million increase YoY[15] - Beef segment sales for Q4 2025 were $5489 million, a 43% increase YoY, but with an AOI loss of $94 million[18] - Pork segment sales for Q4 2025 were $1414 million, a 17% decrease YoY, but with AOI at $31 million, a $12 million increase YoY[21] - Prepared Foods segment sales for Q4 2025 were $2546 million, a 30% increase YoY, with AOI at $189 million[11] Financial Position - The company's net leverage ratio improved YoY, reaching 21x in Q4 2025[5, 33] FY26 Guidance - The company projects sales growth of 2%-4% for fiscal year 2026[37] - Total AOI is projected to be between $21 billion and $23 billion[37]

Tyson Foods is forecasting another financial year of rising sales after reporting top-line growth for the 12 months just ended. The US meat titan expects its net sales to rise 2-4% in its new financial year, which started on 28 September. In the year just completed, the Hillshire Farm owner generated sales of $54.44bn, up 2.1% on the year before. Sales rose 3.3% excluding the impact of a $653m increase in “legal contingency accruals”, which Tyson recognised as a reduction to sales. Operating income fel ...

Core Viewpoint - Tyson Foods anticipates increased sales for the current fiscal year, driven by higher domestic production of pork and chicken, which is expected to compensate for a decrease in beef production [1] Group 1: Sales Expectations - The company expects higher sales due to increased domestic production of pork and chicken [1] - The anticipated rise in sales is positioned to offset a decline in beef production [1]

Financial Performance - Sales increased by 2.1%, or $1.1 billion, to $54.4 billion in fiscal 2025, driven by higher average sales prices in the Beef, Pork, and Prepared Foods segments[158]. - Operating income for fiscal 2025 was $1,098 million, down from $1,409 million in fiscal 2024, impacted by $738 million in legal contingency accruals and $343 million in goodwill impairments[158][159]. - Net income attributable to Tyson was $474 million in fiscal 2025, down from $800 million in fiscal 2024, with diluted earnings per share decreasing from $2.25 to $1.33[181]. - Total sales for fiscal 2025 reached $54,441 million, a 2.1% increase from $53,309 million in 2024[184]. - Net income for fiscal 2025 is reported at $507 million, a decrease from $822 million in fiscal 2024[231]. - EBITDA for fiscal 2025 is $2,495 million, down from $2,872 million in fiscal 2024[231]. Segment Performance - Beef segment sales increased to $21,623 million in 2025, up 5.6% from $20,479 million in 2024, despite a sales volume decrease of 1.9%[190]. - Pork segment sales decreased to $5,781 million in 2025, down 2.1% from $5,903 million in 2024, with an operating loss of $199 million[191]. - Chicken segment sales rose to $16,837 million in 2025, a 2.5% increase from $16,425 million in 2024, with operating income of $1,427 million[196]. - Prepared Foods segment sales increased to $9,930 million in 2025, up 0.8% from $9,851 million in 2024, with operating income of $898 million[199]. - The Beef segment reported an operating loss of $1,135 million in 2025, compared to a loss of $381 million in 2024[190]. - The Chicken segment's operating income improved significantly from a loss of $770 million in 2023 to a profit of $1,427 million in 2025[196]. Expenses and Costs - Selling, general and administrative expenses decreased by $97 million to $2,121 million, primarily due to lower costs in the Chicken segment and reduced legal contingency accruals[172][173]. - Cost of sales increased by $1,197 million, with higher input costs per pound impacting the Beef segment by approximately $1,840 million[168][170]. - The Prepared Foods segment faced $41 million in charges related to a product recall in 2025[187]. - The company experienced a $340 million decrease in feed ingredient costs, positively impacting operating income in the Prepared Foods segment[201]. Legal and Contingency Accruals - The company recognized $698 million in legal accruals related to various litigations in fiscal 2025[240]. - Legal contingency accruals impacted the Beef and Pork segments, with $318 million and $380 million recognized in 2025, respectively[190][185]. Tax and Goodwill - The effective tax rate increased to 34.1% in fiscal 2025, primarily due to a non-deductible goodwill impairment[179][180]. - The company recognized $343 million in goodwill impairment in the Beef segment during fiscal 2025[175][176]. - During fiscal 2023, the company recognized $781 million of goodwill impairment charges, including $333 million for the Beef reporting unit[258]. - In the third quarter of fiscal 2025, the company recognized a $343 million impairment to fully impair the remaining goodwill of the Beef reporting unit[260]. Liquidity and Debt - The company had total liquidity of $3,729 million as of September 27, 2025, including $1,229 million in cash and cash equivalents[211]. - The ratio of net debt to EBITDA increased to 3.0x at September 27, 2025, compared to 2.8x at September 28, 2024, due to a decrease in EBITDA[215]. - The company fully repaid a $750 million term loan due May 2026 and $310 million of a term loan due May 2028 using cash on hand in fiscal 2025[210]. - The company expects net interest expense to approximate $395 million for the 53 weeks of fiscal 2026[216]. - The revolving credit facility has a committed capacity of $2.5 billion, with no borrowings under the facility during fiscal 2025[212]. - The company was in compliance with all debt covenants at September 27, 2025, and expects to maintain compliance[221]. Pension and Benefits - The funded status of the defined benefit pension plans is underfunded by $146 million at the end of fiscal 2025, an improvement from $158 million at the end of fiscal 2024[222]. - The company contributed $14 million to pension plans in fiscal 2025 and expects to contribute approximately $15 million in fiscal 2026[222]. - The net periodic benefit cost for defined benefit pension plans was $7 million in fiscal 2025, with a projected benefit obligation of $176 million[250]. Market Risks and Sensitivities - The company continuously evaluates macro-economic conditions, including inflationary pressures and rising interest rates, which could impact the fair value of reporting units and indefinite life intangible assets[267]. - The company has variable rate debt of $484 million with a weighted average interest rate of 5.9%, and a hypothetical 10% increase in interest rates would raise annualized interest expense by approximately $3 million[283]. - The company holds fixed-rate debt of $8,346 million with a weighted average interest rate of 4.8%, and a hypothetical 10% decrease in interest rates would increase the fair value of this debt by approximately $231 million[284]. - At September 27, 2025, a hypothetical 10% change in foreign exchange rates would have impacted pretax income by $21 million[286]. Future Outlook and Strategy - The company aims to grow its branded portfolio and expand in international markets by delivering profitable value-added food offerings in high-growth categories[164]. - Capital expenditures for fiscal 2026 are expected to be between $700 million and $1,000 million, focusing on profit improvement and maintenance projects[209].

Core Viewpoint - Tyson Foods has forecasted annual revenue significantly above analysts' estimates, driven by anticipated demand for chicken products to compensate for weaknesses in its beef business [1] Group 1 - The company is betting on strong demand for chicken products to offset challenges faced in the beef sector [1]

Financial Performance - Sales for fiscal 2025 reached $54,441 million, a 2.1% increase from the prior year[5] - Adjusted operating income for fiscal 2025 was $2,287 million, up 26% from the previous year[5] - Adjusted EPS for fiscal 2025 increased by 33% to $4.12 compared to $3.10 in fiscal 2024[5] - The company reported a GAAP operating income of $1,098 million for fiscal 2025, down 22% from the prior year[5] - Net income attributable to Tyson for the twelve months ended September 27, 2025, was $474 million, down from $800 million in the previous year, resulting in a decrease in net income margin from 1.5% to 0.9%[23] - For the fourth quarter ended September 27, 2025, Tyson Foods reported GAAP net income attributable to Tyson of $0.13 per share, compared to $1.00 per share in the same quarter of the previous year[34] - Net income for the twelve months ended September 27, 2025, was $507 million, a decrease from $822 million for the same period in 2024, representing a decline of approximately 38.3%[38] Sales and Revenue - Sales for the three months ended September 27, 2025, were $13,860 million, representing a 2.2% increase compared to $13,565 million for the same period in 2024[23] - The company expects sales to increase by 2% to 4% in fiscal 2026 compared to fiscal 2025[15] - The twelve months ended September 27, 2025, saw adjusted non-GAAP results with total sales of $2,287 million and net income attributable to Tyson of $4.12 per share, compared to $1,820 million in sales and $3.10 per share in the previous year[34] Operating Income and Margins - Operating income for the three months ended September 27, 2025, decreased to $158 million from $525 million in the same period last year, reflecting a significant drop in operating margin from 3.9% to 1.1%[23] - The adjusted operating income for the fourth quarter ended September 27, 2025, was $608 million, with contributions from the chicken segment at $457 million and pork at $31 million[36] - For the twelve months ended September 27, 2025, Tyson Foods reported an adjusted operating income of $2,287 million, with significant contributions from the chicken segment[36] Expenses and Impairments - The effective tax rate for the twelve months ended September 27, 2025, was 34.1%, influenced by a $343 million goodwill impairment charge[23] - The company reported a goodwill impairment of $343 million, which is non-deductible for income tax purposes, impacting the overall financial performance[23] - Tyson Foods experienced a reported operating loss in the beef segment of $1,135 million for the twelve months ended September 27, 2025, while the chicken segment reported an operating income of $1,427 million[36] Cash Flow and Liquidity - Cash provided by operating activities for the twelve months ended September 27, 2025, was $2,155 million, a decrease from $2,590 million in the previous year[27] - Free cash flow for the twelve months ended September 27, 2025, was $1,177 million, down from $1,458 million in 2024, indicating a decrease of approximately 19.3%[40] - Total liquidity as of September 27, 2025, was $3.7 billion, expected to remain above $1.0 billion[18] Debt and Financial Ratios - Total gross debt decreased to $8,830 million as of September 27, 2025, from $9,787 million in 2024, a reduction of about 9.8%[38] - Total net debt also decreased to $7,601 million in 2025, down from $8,060 million in 2024, representing a decline of approximately 5.7%[38] - The gross debt to Adjusted EBITDA ratio improved to 2.4x in 2025 from 3.1x in 2024, indicating better leverage management[38] - The net debt to Adjusted EBITDA ratio improved to 2.1x in 2025 compared to 2.6x in 2024, reflecting enhanced financial stability[38] Capital Expenditures and Future Plans - The company plans capital expenditures of $700 million to $1.0 billion for fiscal 2026[16] - Projected adjusted operating income for fiscal 2026 is between $2.1 billion and $2.3 billion[14] - Anticipated adjusted operating income for the Chicken segment in fiscal 2026 is between $1,250 million and $1,500 million[11] Dividends - The quarterly dividend was increased to $0.51 per share for Class A common stock, reflecting a 2% increase from fiscal 2025[21] - Dividends declared per share for Class A increased to $2.010 from $1.970, while Class B dividends rose to $1.809 from $1.773[23] Workforce and Transparency - The company had approximately 133,000 team members as of September 27, 2025, maintaining a stable workforce[41] - The company plans to discuss its financial results in a conference call scheduled for November 10, 2025, indicating ongoing transparency with investors[42]

Core Insights - Tyson Foods reported a year-over-year growth in sales, adjusted operating income, and adjusted earnings per share, indicating the strength of its multi-protein, multi-channel portfolio [4][6][10] Financial Performance - Sales for the fourth quarter of 2025 reached $13,860 million, a 2.2% increase from the previous year, while total sales for the fiscal year were $54,441 million, up 2.1% [6][26] - GAAP operating income for the fourth quarter was $158 million, down 70% from the prior year, and for the fiscal year, it was $1,098 million, down 22% [6][8] - Adjusted operating income for the fourth quarter was $608 million, up 19% year-over-year, and for the fiscal year, it was $2,287 million, a 26% increase [6][9] - Net income per share attributable to Tyson for the fourth quarter was $0.13, down 87% from the previous year, while for the fiscal year, it was $1.33, down 41% [6][26] - Adjusted net income per share for the fourth quarter was $1.15, up 25% year-over-year, and for the fiscal year, it was $4.12, a 33% increase [6][9] Segment Results - Beef segment sales for the fourth quarter were $5,489 million, a decrease of 8.4% year-over-year, while for the fiscal year, sales were $21,623 million, down 1.9% [7] - Pork segment sales for the fourth quarter were $1,414 million, down 4.2%, and for the fiscal year, sales were $5,781 million, down 1.7% [7] - Chicken segment sales for the fourth quarter were $4,411 million, up 3.7%, and for the fiscal year, sales were $16,837 million, up 2.6% [7] - Prepared Foods segment sales for the fourth quarter were $2,546 million, down 1.7%, and for the fiscal year, sales were $9,930 million, down 2.5% [7] Outlook - The USDA projects a 1% increase in domestic protein production for fiscal 2026 compared to fiscal 2025 [10] - Tyson anticipates total company adjusted operating income for fiscal 2026 to be between $2.1 billion and $2.3 billion [17] - Sales are expected to increase by 2% to 4% in fiscal 2026 compared to fiscal 2025 [18] - Capital expenditures are projected to be between $700 million and $1.0 billion for fiscal 2026 [19] - Free cash flow is expected to range from $0.8 billion to $1.3 billion for fiscal 2026 [22] - The Board of Directors increased the quarterly dividend to $0.51 per share for Class A and $0.459 for Class B, resulting in an annual dividend rate increase of 2% compared to fiscal 2025 [24]